Property Management Software Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-premises), By Application (Residential and Commercial), By End-User (Property Managers, Housing Associations, Real Estate Agents, and Others), and Regional Forecast, 2023-2030

The global property management software market size was valued at USD 20.14 billion in 2022 and is projected to grow from USD 22.05 billion in 2023 to USD 42.89 billion by 2030, exhibiting a CAGR of 10% during the forecast period.

The increasing demand for property management software to address consumers’ real estate preferences and growing need for improved consumer handling and support are driving the market expansion. For instance, in February 2021, Yardi Systems, Inc. launched Rent Relief by Yardi. This launch will help households and landlords manage payments quickly and easily. Similarly, in March 2021, Planon partnered with AddOnn to combine AddOnn’s SaaS solution with Planon’s software platform for building & service digitization to offer an end-to-end solution to customers across the globe.

Real estate is undergoing a rapid shift, supported by the robust growth of hotel and tourism brands and emerging usage of a platform for customer retention. As part of their strategy, market players are spending a lot of money on research and development operations, which has increased the demand for property management software. For instance,

• In November 2020, Entrata, Inc. launched a bank account verification service for its current product suite. As a result of the changes, Entrata was equipped with real-time account authentication and balance confirmation capabilities, thereby significantly reducing the number of fraudulent transactions.

COVID-19 IMPACT

Smart Property Software Adopted by Residential Property Managers Boosted Market Growth Amid Coronavirus Pandemic

The effects of COVID-19 pandemic were felt globally, with real estate enterprises witnessing major disruptions. Short-term concerns for real estate management included keeping visitors & tenants safe, maintaining value, using advanced cleaning procedures, and adhering to governmental norms. Furthermore, many schools and offices were closed and companies were forced to explore various "work from home" options.

The COVID-19 pandemic gave residential property managers a chance to rethink their strategies. As a result, smart processes and Artificial Intelligence (AI)-based technologies saw a notable increase in their popularity.

• For instance, in June 2020, during the COVID-19 pandemic, the Building Engineering Services Association (BESA) and SFG20 partnered with the U.K. BIM Alliance. This partnership aimed to improve the building performance and maximize cost-saving.

Furthermore, as more companies urged their employees to return to work, building managers faced new challenges in designing operation plans that centered around COVID-19 to meet the expanding needs of their tenants. Also, as the situation returned to normal, residents and tenants continued to occupy new areas for residential and commercial purposes. These factors are expected to contribute to the market's growth. Also, various governments are significantly investing in real estate assets. For instance, according to the IBEF, India invested USD 2.4 billion in real estate assets in the first half of 2021, a 52% increase year-on-year. Similarly, according to Savills India, real estate demand is estimated to rise by 15-18 million square feet by 2025. These increasing investments and demand for real estate are further driving the property management software market growth.

LATEST TRENDS

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Evolving Trend of Workforce Mobility to Strengthen Growth

Many employees are currently opting to work from home rather than from offices, corporate headquarters, or a global branch of an organization. This helps in necessitating flexibility in access to office resources and data. Furthermore, businesses are utilizing virtual workplaces to decrease their physical infrastructure requirements to a bare minimum, allowing them to be more flexible and make better use of their office space.

Many companies are searching for mobility management, workplace management, and other integrated facility management solutions. This allows property managers to maintain the speed of work while dealing with a large workforce. These solutions may be used by associated real estate agents and property managers to keep track of all the properties they maintain and the routine maintenance that needs to be done on them. As a result, the business of assets management is benefiting from the growing trend of worker mobility.

DRIVING FACTORS 

Increasing Demand for SaaS-based Software to Aid Market Growth

Software-as-a-Service (SaaS) and cloud computing integrated services have grown in popularity as preferred methods of delivery services. Subscription-based SaaS solutions help in benefiting businesses of all sizes. Companies in the market are increasingly resorting to SaaS solutions to streamline operations by automating workflows and eliminating manual input. Also, by deploying SaaS solutions, organizations can decrease the complexity and cost of on-premises deployment. SaaS software helps large multifamily property management companies integrate numerous technologies throughout their portfolio. Furthermore, the SaaS approach is critical for multi-vendor device compliance with older systems.

Real estate organizations are data-driven, and employees rely on updated information to make critical decisions. Offline networks make it impossible to get data from anywhere, posing a significant barrier to decision-making. SaaS solutions enable users to access information from any place using any device with internet access. Furthermore, the SaaS model aids in the integration of multi-vendor platforms into existing systems. Property managers may use a SaaS platform to combine their property solutions with sophisticated payment services for fast and easy transactions.

RESTRAINING FACTORS

Budget Constraints to Reflect Broader Range of Risk

As the real estate business globalizes, the scope of risks is expected to get more extensive. The top risks will be country or city risk including political risk and the risk that benefits would be seized. Also, rising real estate investments in developing nations may pose several dynamic risks. Furthermore, owing to a lack of funds, real estate brokers choose to engage with local developers, which introduces several operational hazards, such as delayed building sites or even fraudulent operations. This might impede the expansion of the property management software market share.

SEGMENTATION

By Deployment Analysis

Cloud Segment to Aid Market Growth Owing to High Convenience and Security

By deployment, the market of property management software is bifurcated into cloud and on-premises. The cloud segment is anticipated to account for the largest market share as well as record the highest CAGR during the forecast period. Cloud-based solutions enable property managers and landlords to store all documents, such as legal contracts, lease agreements, and contractor SLAs (Service Level Agreements) on a single platform at a minimal price. Another advantage of cloud-based software is improved security. Security upgrades for traditional property applications are rare, leaving data exposed to theft, power failures, and physical disasters.

The on-premises segment is anticipated to register a moderate CAGR during the forecast period. The installation of property management software on-premises eliminates security problems via the internet, reducing the risk of data breaches and cybersecurity attacks.

By Application Analysis

Residential Segment to Dominate Market Owing to Development of Residential Buildings

Based on application, the market is categorized into commercial and residential. The residential segment is anticipated to account for the largest share in the market. The necessity of property management software to manage residential properties, such as residences, single & multi-story flats, and bungalows is driving the expansion of this segment. With an ever-increasing population, the need for residential buildings is expected to increase. Owing to this, the demand for assets management systems will grow to meet the rising construction of residential properties.

The commercial segment is anticipated to grow steadily. A commercial property manager is responsible for managing non-residential assets, such as retail spaces, offices, industrial buildings, and storage facilities. Commercial property owners keep complete administrative and financial records and keep all applicable fees, mortgages, repairs, and benefits up to date.

The commercial segment is further divided into government, construction, retail, real estate, and others (education, industrial, and hotel). Among them, the use of this software in construction and real estate is expected to rise rapidly throughout the forecast period.

By End-User Analysis

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Rising Product Adoption among Property Managers to Organize their Work Efficiently Aids Market Growth

Based on end-user, the market of property management software is divided into property managers, housing associations, real estate agents, and others (third-party agents, property investors).

The property managers segment is anticipated to rise rapidly during the forecast period. Property managers need to manage their everyday duties, which includes several balancing activities around them. The manual execution of corporate duties, such as monitoring, rent payments, and receiving maintenance orders is time-consuming and often intimidating. Thus, there is a growing demand for automated software that allows property managers to manage many business operations simultaneously.

The adoption of this software among property investors and third-party agents is anticipated to record a healthy CAGR during the forecast period.

REGIONAL INSIGHTS

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Geographically, the market is segmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America held the maximum market share in 2021. The expansion of e-commerce in this region is predicted to offer property managers and real estate developers several opportunities to invest in asset management software/services. External investment in the region's real estate market is likely to increase significantly in the coming years.

Further, due to the wide range of investment options and a positive economic situation, real estate wealth managers may employ foreign real estate funds to diversify more efficiently. Also, metropolitan areas in the region are struggling in terms of population and economic development. As a result, urban areas are the most profitable asset management software marketplace. The region's profitability from real estate investments is significantly correlated with its GDP growth and population changes.

Europe is anticipated to grow at a significant rate as monetary development in the region is more promising in metropolitan areas than in the nation. Furthermore, the region's digital strategy and infrastructure are being updated continually. This has boosted the use of business intelligence and predictive analytics to make buildings future-ready and better employ IoT to design and redesign structures. This improved transparency has spurred investments in real estate markets. This has helped boost the market growth in Europe.

The market in Asia Pacific is anticipated to record an exponential CAGR. Emerging countries are quickly growing. In particular, China, India, and Indonesia will grow at a notable pace in terms of global middle-class spending. As a result, households may exceed their spending threshold, which opens up opportunities for real estate investment. The retail, logistics, and hotel industries are all undergoing a substantial change as they respond to the escalating demands caused by the rapid rise of e-commerce. Similarly, co-working and shared workplaces have expanded across Asia Pacific in recent years, bringing a technological edge to the traditional serviced-office industry while providing good returns for landlords.

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The Middle East & Africa market could witness rapid growth owing to the impact of changing laws and significance of more transparency in the real estate business. Revaluation or deletion of senior housing and financial support from owners provides investment possibilities in private rental and healthcare sectors of various nations. Furthermore, low housing interest rate suggestions by governments in the region have contributed to the market's expansion.

KEY INDUSTRY PLAYERS

Companies Offer Targeted Solutions to Owners and Managers to Expand Penetration

Entrata, Inc. is a global company that offers real estate companies software and data analytics solutions. Owners and property managers are said to benefit from the company's solutions for managing properties, such as residential, commercial, and hotels. The company has emerged as a key provider of candidate screening, revenue management, and utility management services owing to its effective SaaS solutions. These firms are concentrating their efforts on the commercial sector of the industry to provide modern and effective solutions to property managers and agents.

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – Inhabit launched ResidentIQ, a property management software for residential property managers. This software offers secured operations, payment, insurance, resident engagement, and screening solutions in a single software, making it a user-friendly software.


• January 2023 – Union, a property management software provider, launched a centralized leasing software and support solution to allow organized remote management of multifamily communities.


• January 2022 – Guesty, a hospitality and property management solution provider, launched GuestyPay, a novel payment processing solution. This solution is designed specifically for property managers and vacation rental. This solution was fully operational for users in the U.S. and it was expected to be launched for European customers in mid-2023.


• April 2021 – Entrata Inc. announced the integration of Alexa with residential properties. This integration would allow property managers to manage or set up Alexa-enabled devices in every unit and create voice-controlled smart homes.


• March 2021 – Planon partnered with AddOnn to combine AddOnn’s SaaS solution with Planon’s software platform for building & service digitization to offer end-to-end solutions to end-users across the globe.

LIST OF KEY COMPANIES PROFILED:

• AppFolio, Inc. (U.S.)


• Archibus, Inc. (U.S.)


• Yardi Systems, Inc. (U.S.)


• CORELOGIC (U.S.)


• Entrata, Inc. (U.S.)


• ManageCasa (U.S.)


• MRI Software LLC (U.S.)


• IBM Corporation (U.S.)


• SAP SE (Germany)


• MAISONETTE (U.A.E.)

REPORT COVERAGE

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The research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, applications, and the adoption of advanced technologies in several applications. Besides this, it offers insights into the latest market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several key factors that have contributed to the growth of the market in recent years.

Report Scope and Segmentation